TaxTMI 
TaxTMI 
2018 (12) TMI 1390
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted 11.05.2012 setting aside cancellation of registration of the respondent-assessee under Section 12AA of the Act. By order dated 26.9.2013 ITA No. 37/2013 filed by the Revenue challenging the order dated 11.05.2012 of the Tribunal was dismissed by the Delhi High Court for the following reasons:- "(i) The respondent society had made contribution of Rs. 22,500/- in all, to eight churches/institutions for advertisement. Director of Income Tax (Exemption) held that this shows that the respondent was working for benefit of a particular religious community. In our opinion, the Tribunal's finding, keeping in view the quantum, is justified and is not perverse. The amount involved is too meagre and does not show or establish that the respondent s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....awan's case [1977] 109 ITR 527 (SC), as a matter of advancement of the purpose. There must be an activity for profit and it must be involved in carrying out the purpose of the trust or institution or to put it differently, it must be carried on in order to advance the purpose or in the course of carrying out the purpose of the trust or institution. The profit of the assessee could be utilised only for the purpose of feeding this charitable purpose and the dominant and real object of the activity of the assessee being the advancement of the charitable purpose, the mere fact that the activity yielded profit did not alter the charitable character of the assessee." (iii) Director of Income Tax (Exemption) has observed that the respondent soc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nding, mixing and diluting the medicines was done. This was required to reduce the strength of medicine and make it cost effective when smaller dosages were required. Drug Control Department had granted permission to sell, stock and run the pharmacy. The respondent's hospital had been in existence for past 125 years and the Drug Controller had conducted regular inspections. The gain, if any, from sale of medicines was utilised or applied for charitable activities of the society itself. (vi) Director of Income Tax (Exemption) has referred to an incident relating to import of medical equipment. Tribunal has observed that the said occurrence had taken place in the year 1990. The import in question is certainly distant in point of time as the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... at large. Medical aid and facilities were not denied on the ground of religion or restricted to persons of a particular religion. General public was the beneficiary. Book shop had also stored and was distributing books on philosophy, moral science etc. In cases of illness etc. patient and attendants do like to read religious books and pray. To attract and fall foul of Section 13(1)(b) the trust or the institution should be created or established for the benefit of a particular religion or group. Display and distribution of religious books free of cost in a small book shop without charging any rent or electricity charges would not change the core and primary nature of charitable activity carried out by the respondent-assessee as to attract....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... would depend on the terms of employment. The assessment order does not refer to the specific details of purported 'subsidy' paid/incurred and also how employees were covered under Section 13(3) of the Act. 7. Thirdly, our attention was drawn to the finding by the Assessing Officer on the difference between the average cost of medicines for the patients in the General OPD, and cost of medicines for patient in the free OPD in the hospital and at Nandnagari. The assessing officer assumed that the respondent-assessee was charging differential prices at its own discretion and was not providing charitable services. The inference drawn is farfetched and based on surmises and conjectures. It was not disputed and challenged that the respondent-as....